Are you looking to buy a house or property in the Chicago area this year? If you are, take a look at what makes Chicago a great place to start investing today, as well as what the market looks like for the year.
Before we jump into what you can expect in the Chicago housing market this year, let’s take a look at the factors that impact the city’s real estate investments.
Chicago is the third-largest city in the United States, and its population is growing faster than the rest of the country. The city is also one of the most diverse cities in the entire world, as there is no single dominant industry in the city. That means that if one industry goes down, the overall impact of the economy will not be hurt as bad, as other sectors will absorb the unemployed. Finally, Chicago is a top tourist destination worldwide. People from all over the world not only come to visit Chicago for leisure, but also for business.
Now that you know what factors impact the Chicago real estate market, take a look at what you can expect this year.
1. Prices will remain affordable
One large problem that real estate investors and homebuyers faced in 2019 was the affordability of homes. However, this will not be a problem for investors in the Chicago real estate market. According to Mashvisor’s analysis of big data and real estate comps, the median property price of houses for sale in Chicago in Q4 2019 amounts to $441,700. Even though that price is far more than the national median home value, homes for sale in Chicago still sell for much less than properties in other hot real estate markets such as Miami, San Francisco, and New York.
2. Buyer’s market
Right now, the housing market in Chicago is a seller’s market. However, it has been shifting towards a buyer’s market and is expected to reach that by the end of 2020.
3. Condos will dominate
Condos make up the most numerous property type of Chicago homes for sale, with a 52% market share. On the other hand, single-family homes for sale in Chicago make up 28%.
4. Investment properties will offer high ROI
In Mashvisor’s Chicago real estate market analysis you will find that multi-family homes and single-family homes will be the most profitable traditional rental properties.
5. Rental demand will stay strong
Rental demand will remain high in Chicago as over 1.5 million people rent in the city right now. So many people are choosing to rent rather than buying a home because it makes more financial sense with a moderate price ratio of 18. The rising number of tourists visiting the city will also keep the demand for Airbnb rental properties high.
Now that you know what the housing market looks like in Chicago this year, contact Sandy Majetich-Toth at 815-791-2215. I can help you in your search for a new home, or help you sell your current property. Let’s get started today!